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Asda Money launches new reward credit card - is it any good?

Shoppers can earn cashback in 'Asda Pounds' on their spending

Asda shoppers can now earn rewards on what they spend - both in store and elsewhere - with the Asda Money credit card. 

The Asda Money Credit Card - from Asda and Jaja Finance - offers cashback when you spend in Asda supermarkets and in its fuel forecourts, as well as purchases outside of Asda. This cashback can then be converted into vouchers and spent in store.

With inflation at 9.4% being driven by rising prices for fuel, food and non-alcoholic beverages, this could be a convenient way to save money on your weekly shop.   

Here, Which? takes a closer look at the rewards on offer, and how the Asda Money credit card compares to other deals on the market. 

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What does the Asda Money credit card offer?

The card, launched with Jaja Finance, offers 1% cashback in ‘Asda Pounds’ when you use your credit card to buy groceries, fuel and other Asda services - including travel insurance. 

If you sign up to the card before 28 August, you can get an introductory bonus cashback rate of 2% on all Asda purchases made within the first 60 days of opening the account. After this, the cashback rate reverts to 1%.

If you spend £100 in Asda, you'll earn one Asda Pound - or two, if you signed up on the promotional rate. 

You will get a rate of 0.3% cashback on purchases made elsewhere. 

The card is supplied by Visa, has no annual fee and a representative APR of 22.9% (variable).

How to use Asda Rewards

Shoppers will be rewarded through Asda’s loyalty programme - Asda Rewards, which launched on a trial basis last year.

To get the cashback you've earned, you’ll need to download the Asda Rewards app for free and link it to your credit card. 

Your Asda Pounds can then be spent by moving them to your 'Cashpot' and converted into an Asda voucher, which can be scanned at the checkout on your mobile. 

The app also has other ways you can earn rewards. For example, shoppers can earn Asda Pounds by scanning items, buying star products and completing ‘missions’ - such as buying a certain number of items from one department. 

Are there any limitations?

You can only earn cashback on certain types of purchases, including food, drink, George clothing, fuel, and other services such as Asda tyres and Asda Opticians in store. 

You can’t earn rewards on things like travel money, cash, cash advances, or cash alternatives such as cryptocurrency. 

You also can't currently earn Asda Rewards in all of its stores yet. Of Asda's 640 stores, you can only use Asda Rewards in 300 of them. Asda says the deal will be rolled out to more stores soon - but in the meantime you can search for participating stores on its website. 

The retail giant also told Which? that Asda Rewards are due to be rolled out online later in the summer, after being trialled in Wales right now. 

The good news is that you can have additional card holders, who can also earn Asda Pounds - maximising your potential for earning rewards. 

Any Asda Pounds which have not been added to your Cashpot will expire if you don’t use your credit card for 12 months. 

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How does the Asda Money credit card compare?

There are a number of other credit cards which reward you with points or cashback when shopping at your favourite supermarket. 

We’ve rounded them up below and ordered them alphabetically.

Credit cardWhat rewards can you earn?Other perks?Representative APR
Asda Money Credit Card1% cashback in Asda which can be converted into Asda vouchers. 2% cashback on Asda spending for the first 60 days if you sign up before 28 August. 0.3% cashback elsewhere. Earn extra Asda Pounds using the Asda Rewards app.22.9% variable
John Lewis/Waitrose Partnership Card*Five points for every £4 spent in John Lewis or Waitrose online and in store. One point for every £4 spent elsewhere. 500 points converts to a £5 voucher for John Lewis or Waitrose.Interest-free spending for nine months, and 18 months 0% on balance transfers (with a 2.9% balance transfer fee).18.9% variable
M&S Shopping Plus Credit CardOne point for every £1 you spend in M&S and one point for every £5 you spend elsewhere. 100 reward points converts to £1 in M&S vouchers.Interest-free spending for up to 24 months, and up to 24 months 0% on balance transfers (with a 2.9% balance transfer fee).21.9% variable
Sainsbury's Bank Nectar Credit CardEarn up to three points per £1 spent at Sainsbury's, Argos, Habitat and Tu Clothing. One point for every £5 spent elsewhere. 8,000 bonus points if you use the card to spend over £400 at eligible stores during the first two months of opening the account. Points can be spent with participating retailers.Interest-free spending for up to 17 months and 0% interest on balance transfers for up to 17 months (with a 3% balance transfer fee).20.9% variable
Tesco Bank All Round Credit CardFive Clubcard points for every £4 spent in Tesco and on Tesco fuel (excluding Esso). One Clubcard point for every £8 spent elsewhere. Clubcard points are turned into Clubcard vouchers every three months, to be spent with Tesco and/or reward partners.The card also comes with 0% APR on purchases, balance transfer (1.99% fee), and money transfers (3.99% fee) for up to 15 months from account opening.20.9% variable

Information correct as of 20/07/22. *The John Lewis/Waitrose Partnership Card is currently closed to new applicants. It is due to relaunch later this summer with New Day. 

All these cards have no annual fee and offer rewards, however some also offer 0% on purchases and balance transfers for a limited time. 

The best card for you will depend on where you shop the most.

If you're looking for a credit card specifically for a balance transfer, 0% interest on purchases, or a money transfer, other providers may be able to offer longer interest-free periods.

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Tips for picking a credit card 

We’ve rounded up some tips on how to pick the most suitable credit card for you. 

What’s the main purpose of the card?

Do you need it to reduce debt? Are you planning on making a big purchase and want to spread the cost across a few months? Or are you going on holiday and need it to spend abroad?

We've set out some motivations behind getting a new card in our guide to the different credit card types

Consider alternative cashback cards

If you’re tempted by the Asda Money credit card, but would prefer to be rewarded in cash, consider a cashback credit card.

The American Express Platinum Everyday Credit Card has no annual fee, and a representative APR of 25.7%.

It offers 5% cashback for the first three months, capped at £100. After that, you earn 0.5% cashback on spending up to £10,000, and 1% on spending above £10,000. You must spend a minimum of £3,000 a year to qualify for cashback.

Alternatively, both Lloyds Bank and Halifax offer a fee-free cashback credit card that offers up to 0.5% on purchases - plus a £20 bonus if you spend £1,000 in the first three months.  

Check our reviews and recommended providers

If you’re looking to take out your first credit card, or want to switch, you can check out our best and worst credit card providers to see which brands are Which? Recommended Providers.

You can also have a look at our credit card company reviews for more detail on how customers rated brands for their services.